UK Mortgage Rates — Find the Cheapest Deal
Compare current UK mortgage rates across fixed variable and tracker products. See 2-year and 5-year fixed rates from major UK lenders.
UK mortgage rates have stabilized in 2026 with 2-year fixed rates at 4.2-5.2% and 5-year fixed rates at 3.9-4.8%. Variable rates track the Bank of England base rate plus a margin. With rates potentially declining choosing between short-term and long-term fixes requires careful consideration of your expectations for future rate movements.
Should I fix for 2 or 5 years?
If you expect rates to fall significantly in 2 years choose a 2-year fix to remortgage at lower rates sooner. If you want payment certainty and rates are already attractive a 5-year fix locks in protection for longer. 5-year fixes often have slightly lower rates than 2-year fixes reflecting market expectations of future rate drops.
Calculate Now
Mortgage Calculator
How This Calculator Works
This calculator uses the standard reducing balance method to compute your monthly payments. The formula takes your loan principal, annual interest rate, and tenure to calculate the exact Equated Monthly Installment (EMI) or payment amount. Each monthly payment consists of two components — principal repayment and interest charges. In the early months, a larger portion goes toward interest, but as your outstanding balance decreases, more of each payment reduces the principal. This is why making extra prepayments in the early years of your loan saves significantly more interest than prepaying later.
Tips to Get the Best Loan Deal
Always compare the Annual Percentage Rate (APR) rather than just the advertised interest rate, as APR includes processing fees, insurance charges, and other costs. Negotiate your processing fee — most banks will reduce or waive it if you ask. Choose the shortest tenure your budget allows since longer tenures dramatically increase total interest paid. Check prepayment terms before signing — RBI mandates zero prepayment penalty on floating rate home loans in India. Finally, maintain a credit score above 750 to qualify for the best rates from any lender.
Key Information
| Parameter | Details |
|---|---|
| 2-Year Fixed Rate | 4.2% - 5.2% |
| 5-Year Fixed Rate | 3.9% - 4.8% |
| Standard Variable Rate | 5.5% - 7.0% |
| Bank of England Base Rate | 4.5% (March 2026) |
Compare UK mortgage rates
Get accurate results instantly — 100% free, no signup required
Use Calculator NowFrequently Asked Questions
Should I fix for 2 or 5 years?
If you expect rates to fall significantly in 2 years choose a 2-year fix to remortgage at lower rates sooner. If you want payment certainty and rates are already attractive a 5-year fix locks in protection for longer. 5-year fixes often have slightly lower rates than 2-year fixes reflecting market expectations of future rate drops.
How much can I save by remortgaging?
Moving from a 5.5% SVR to a 4.2% fixed on a £200000 mortgage saves £150/month or £1800/year. Over a 2-year fix that is £3600 in savings minus arrangement fees (typically £1000-£1500). Net saving: £2100-£2600. Always remortgage before your fix expires to avoid the expensive SVR.
What fees should I look for in UK mortgages?
Arrangement fee (£999-£1999 typical) valuation fee (often free) legal fees (£300-£500 or free with lender package) and early repayment charges (1-5% during fixed period). Some low-rate mortgages have high fees. Calculate the total cost including fees over the deal period not just the headline rate.
What is a fixed vs variable rate mortgage?
A fixed rate locks your interest rate for 2-5 years, giving payment certainty. A variable (tracker) rate moves with the Bank of England base rate and can be lower initially but carries risk of increases. Most UK buyers choose a 2 or 5 year fix then remortgage when the fixed period ends.
How much deposit do I need for a UK mortgage?
The minimum deposit is typically 5-10% of the property value. A 10% deposit opens more competitive rates, and 25% or more gets the best deals. First-time buyers may access government schemes like Shared Ownership with smaller deposits. The bigger your deposit, the lower your LTV ratio and monthly payments.
What are the stamp duty rates for 2025-26?
Post-April 2025 SDLT rates: 0% on first £125,000, 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1,500,000, and 12% above £1.5 million. First-time buyers pay 0% up to £300,000 and 5% on the portion between £300,001-£500,000 (relief lost above £500,000).
Related Calculators
More Loan Calculators
Last updated: March 2026